Americas Petrogas sells subsidiary to Tecpetrol in US$60 million cross-border transaction

2 minute read
28 August 2015

On August 28, 2015, Americas Petrogas Inc. ("Americas Petrogas" or the "Company") (TSXV: BOE) announced that it had closed the previously announced sale transaction pursuant to which Tecpetrol International S.A. and Tecpetrol Internacional S.L. (Unipersonal) acquired all of the issued and outstanding common shares of Americas Petrogas Argentina S.A. ("APASA"), a wholly-owned subsidiary of the Company, and assumed certain intercompany indebtedness owing by APASA to the Company and its other subsidiaries, for an aggregate cash purchase price of US$59.8 million after an initial working capital adjustment.

Americas Petrogas is a Canadian company with oil and gas interests in Argentina. Along with Indian Farmers Fertiliser Co-operative Limited (IFFCO), the Company owns GrowMax Agri Corp., a private company involved in the exploration for near-surface phosphates, potash and other minerals, and potential development of a fertilizer project in Peru.

Mackie Research Capital Corporation acted as financial advisor to Americas Petrogas and provided a fairness opinion to the Board of Directors of the Company. Stuart Olley advised Mackie Research Capital.

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